Advantage and Disadvange of Running a Family Business

Contextually, the family provides socialisation for children, so they can eventually be prepared for the trials and tribulations of the ‘outside world’. And because children have a lack of power within the family unit, it prepares them to be obedient when consulting with bosses, or those of a higher position, as adults. The family also provide a secure emotional base, so that workers can refresh then rejoin co-workers to make profits for their

The five main parts affect my family because we own a small business, We own a construction company, but we could own any other type of small business or small company that fits the government's regulations. This is because of the freedom to choose our business. In our business my dad interviews clients to give them a set price of what he will charge

In the article, Market Basket Shows the Best and Worst of Family Business by writer of the Harvard Business Review, John A.

This week’s readings take us on a journey through the makings of a successful multigenerational family business. I personally noticed a few of the same themes from class in the readings, two primarily. The first was the processes and concepts a family can include in their business model that allow the company to run as efficiently as possible (such as deliberating on share distribution, holding family meetings, or implementing a non-family board). The second was the steps that current generation leaders should take to prepare the next generation, and the qualities to look for in the next generation. These two themes, as discussed in class, were the main themes in Chapters three and four of Poza’s book.

Family: the business can succumb to the familial conflicts over succession, money, or any other problem. The family should ensure the transmission, from generation to another, of the sense of commitment, and to permeate their ethos. Developing and respecting financial and managerial

The focus of the family leadership was on rewarding and valuing the family's work of wealth creation, rather than on the development of the family as a community that supported the values of the family. There were no roles for family members to serve the family if they were not in the business, and only a few could find a suitable position in the business. (Jaffe,

There are no outside investments or funding available to the investor. Liability factors play a major role in disadvantages too. This type of business has and unlimited liability, meaning if the business fails, the private properties are used to pay off the debt stemming from the business. These are some aspects to consider when contemplating this type of business.

Experience shows 90% of family and small businesses generally fail, because of lack of leadership, decision making, or to become fully professional and competitive in the market. It is on Mr. Pacheco’s shoulders, as the family business leader, this decision rest, to keep the existing path – or - grow and prosper with a new structure.

     Closed families produce people less socially and personally satisfied. For instance, the son or daughter in a family business may tell the parent what to do with the business, but their relationship problem is never really resolved. It is just

Family helps mold every person into who they eventually will become. The family is a guide for the success of a child's future. The stability of family creates a building block for how the child will progress throughout life. When parents divorce, the children are left with no stability causing them to lose basic concepts of childhood that may carry with them throughout life. Children of divorced parents have less success and happiness creating less productive citizens in our nation.

Longevity or Continuity of the Organization: The biggest drawback of the sole proprietorship is that when the proprietor dies, the business dies with them. This could mean that any income from the business depended on by the remaining family could be cut off without

Many people have grown up to be successful individuals with happy, elegant lives. Others grow to not have the luxuries but they still consider themselves successful because they are morally straight. Everyone’s definition of success is different, but through the various definitions of success, all successful people became that way because of their families. The reasons why family is directly related with success in later life is: family can push you to do things you would not do on your own. Family will always be there for you, and family prepares you to care for others.

Family is a group of people who live together to support each other in good and bad times. The main role of family in the lives of human is to develop in them a sense of security

These disadvantages may include an initial high turnover, social loafing, groupthink, and minority domination. To begin with, there is usually an initial high turnover. Teams are not for everyone as some people prefer to work individually. Social loafing happens when a person gives less effort to achieve a goal and when they work with a team versus working individually (businessjargons.com). Maximilian Ringlemann first noted social loafing when he noticed one individual pulling a rope alone exerted about 139 pounds of force. Whereas a group of three people exerted an average force of 117 pounds per person (MGMT Principles of Management). Maximilian concluded that the larger the team, the smaller the individual effort and the smaller the team the larger the individual effort. Social loafers more than anything, want to be able to blend into the background. Groupthink occurs when thinking or decision making as a team discourages the creativity or individual responsibility (dictionary.com). Groupthink restricts discussions and leads to a limited number of alternative solutions (MGMT Principles of Management). One other disadvantage is minority domination, this occurs when one to two people “dominate” a team meeting, thus leading to a slim number of solutions. Scott Jessup of Marque Inc. stated “I think at times I stifle our best thinking. When a CEO wanders into a team meeting an entirely different dynamic takes place and everybody sits back and waits for the CEO to put forth pearls of wisdom”. Lastly, members/employees may not feel included in decisions made by the

The advantages of corporations include limited liability, indefinite life, ease of ownership transfer, and access to capital markets. Limited liability companies and partnerships have limited liability like corporations. The disadvantages of a sole proprietorship are the difficulty in obtaining large sums of capital and unlimited personal liability for business debts. The disadvantages of a partnership are unlimited liability and difficulty of transferring ownership. The disadvantages of a corporation are the double taxation of earnings and filing required state and federal reports. Finally, the disadvantages of limited liability corporations and partnerships are difficulty in raising capital and the complexity of setting them up.